5 Companies That Had A Rough Week

The Week Ending May 29

This week's roundup of companies that had a rough week includes a significant legal defeat for Cisco in an ongoing patent lawsuit, a major security breach against an Internal Revenue Service website that affects more than 100,000 taxpayers, a puzzling iOS glitch that sets some iPhones into reboot mode, partner worries over Tech Data's acquisition of a Phoenix-based solution provider, and signs that BlackBerry's turnaround efforts still have a long way to go.

Not everyone in the IT industry was having a rough go of it this week. For a rundown of companies that made smart decisions, executed savvy strategic moves – or just had good luck – check out this week's Five Companies That Came To Win roundup.

Supreme Court Rules Against Cisco In Wireless Patent Case

Cisco was on the losing end of a U.S. Supreme Court decision this week over a $64 million patent infringement lawsuit.

The high-profile case stems from a lawsuit filed against Cisco by Commil USA in 2007 charging that the networking giant infringed a Commil patent relating to a method for implementing short-range wireless networks with multiple access points. In 2011, a jury awarded Commil $63.8 million in damages in the case.

Later that year, the U.S. Court of Appeals for the Federal Circuit reversed that verdict, saying Cisco had a good faith belief that the patent was invalid and the jury had been given erroneous instructions. But the Supreme Court, in a 6-to-2 vote this week, ruled that Cisco's belief about the patent's validity was not a legitimate defense and so cannot be used in a retrial of the case.

BlackBerry Reveals Layoffs In Struggling Device Business

BlackBerry will lay off an undisclosed number of employees in its mobile device unit as part of the company's efforts to return its struggling smartphone business to profitability.

The layoffs come in the midst of a major push by the Waterloo, Ontario-based company to stabilize its weak revenue through consolidating its device software, hardware and application businesses, according to the company.

IRS Website Security Breach Exposes Data For 100,000 Taxpayers

Add the Internal Revenue Service -- and more than 100,000 taxpayers -- to the growing list of cyberattack victims.

This week, the IRS said that between February and this month an organized crime syndicate accessed personal tax information from 104,000 taxpayers through the agency's online "Get Transcript" service, where taxpayers go to get copies of their back tax forms. The criminals then used some of the information to file for tax refunds totaling some $50 million. But the real concern is that they will use the stolen information to open fraudulent bank accounts and establish credit lines.

Later in the week, news leaked that officials believed that the cyberattack originated in Russia.

Apple Scrambles To Fix iPhone Text Message Glitch

Apple worked to repair a glitch in the iOS Messages application this week after reports surfaced that some iPhones rebooted themselves after the user received a particular string of text. Some users also reported not being able to access their messages after receiving the text.

The string of text that triggers the puzzling problem is made up of Latin and Arabic characters. It trips up the notification banner on the phone, causing it to reboot after receiving the message.

Apple said it was working on a fix for the glitch and would make it available in a future software update. But the company did not say when the fix would be ready or if the problem is a security concern.

Tech Data Works To Temper Concerns Over VAR Acquisition

Tech Data announced Wednesday that it is acquiring Signature Technology Group, a Phoenix-based solution provider. That raised concerns among some solution providers that they could find themselves competing with the Clearwater, Fla.-based distributor, given that the STG deal gives Tech Data the capacity to sell data center services directly to customers without engaging channel partners.

Tech Data executives sought to allay those concerns and convince solution providers that the distributor would not be competing with them. Chuck Bartlett, senior vice president of Advanced Infrastructure Services, said STG has operated the majority of its business outsourcing services through solution providers. CEO Bob Dutkowsky, on Tech Data's first-quarter earnings call, insisted that the distributor's plans to offer STG's services would follow "a partner-led model."